Can unemployed home buyers get a mortgage?

DEAR BOB: My husband and I have owned and lived in our home almost 11 years. We owe about $199,000 on the mortgage. But our neighborhood has skyrocketed in market values. If we sell our home, we can walk away with about $700,000 in profit. We would like to move to a cheaper area. If we buy another house for $400,000 for cash, must we pay capital gains tax on our sale profit? We would like to get a small mortgage on our next home for the tax breaks. But neither of us is employed. Can we get a mortgage and what should we do with the extra cash? – Kris A. DEAR KRIS: You have lots of nice problems. First, let me presume you owned and occupied your principal residence at least two of the five years before its sale. That means you qualify for the Internal Revenue Code 121 home-sale tax exemption up to $500,000 for a married couple filing jointly (up to $250,000 for a single home seller). Purchase Bob Bruss reports online. Your mortgage balance is irrelevant. What matters is your $5...